MAN ACCOUNTING

QUIZ 1

Question 1 (1 point)
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The use of management accounting is
Question 1 options:
Compulsory
Legally obligatory
Optional
Compulsory to some and optional to others
Question 2 (1 point)
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The term "variable costs" refers to:

Question 2 options:
All costs that are likely to respond to the amount of attention devoted to them by a specific manager

All costs associated with marketing, shipping, warehousing, and billing activities

All costs that do not change in total for a given period of time and relevant range but become
progressively smaller on a per unit basis as volume increases

All manufacturing costs incurred to produce units of output

Question 3 (1 point)
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What is the basic concept of cost accounting?

Question 3 options:
Financial audit
Cost ascertainment
Profit analysis
Tax compliance
Question 4 (1 point)
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Which of the following is not true?
Question 4 options:
Financial accounting is required
Managerial accounting need not conform to GAAP

Managerial accounting is not required

Financial accounting reports focus on sub-units of the organization

Question 5 (1 point)
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The term "cost" refers to:
Question 5 options:
The value of the sacrifice made to acquire goods or services
The price of a product sold or services rendered

An asset that has a given benefit and is now expired

An asset that has no given benefit and is now expired

Question 6 (1 point)
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The purpose of management accounting is to help ______ make decisions

Question 6 options:
investors
marketers
banks
managers

Question 7 (1 point)
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The term "sunk costs" refers to:
Question 7 options:
Costs that are directly influenced by the unit manager

Costs that should be incurred in a particular production process

Costs that may be eliminated if some economic activity is changed or avoided

Past costs that are now irrevocable

Question 8 (1 point)
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The primary task of management accounting is, therefore, to redesign the entire accounting
system so that it may serve the ___________ needs of the firm

Question 8 options:
Marketing
Human resource
Operational
Production

Question 9 (1 point)
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Management accounting can be viewed as __________

Question 9 options:
Manager-oriented Accounting
Accounting-oriented Management

Management-oriented Accounting
Marketing-oriented Accounting

Question 10 (1 point)
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Management accounting assists the management
Question 10 options:
Only in planning
Only in direction
In planning, direction and control

Only in control

QUIZ 2(1)
Question 1 (0.4 points)
Saved
Which of the following statements about the statement of cash flows is not correct?
Question 1 options:
Net cash flow is the best measure of profitability since it does not rely on estimates
The statement of cash flows can be used to assess the likelihood of a company paying dividends
A company can have positive net income but at the same time have negative cash flow
A company can have positive net income but at the same time have negative cash flow
Question 2 (0.4 points)
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Which of the following statements about the statement of cash flows is not correct?
Question 2 options:
It does not replace the income statement
It provides details as to how cash changed during a period
It measures profitability
It provides information about cash receipts and cash payments over a period of time

Question 3 (0.4 points)

Saved
Which of the following would not be included in the cash and cash equivalents amount
reported on the balance sheet?
Question 3 options:
Notes receivable due in 90 days
Money market funds
Checking accounts
Treasury bills

Question 4 (0.4 points)

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Suppose a company generally records revenues and expenses before receiving or making cash
payments. Which of the following statements is not correct?
Question 4 options:
If revenues are falling, a net loss could result even though the company reports a net cash inflow from
operating activities
Net income and net cash flows provided by operating activities will always agree
The income statement doesn't explain changes in cash because it focuses on just the operating results of
the business
If revenues are rising, net income could result even though the company reports a net cash outflow from
operating activities

Question 5 (0.4 points)

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Which of the following items is considered to be a cash equivalent?
Question 5 options:
A one-month Treasury bill due in two weeks
A promissory note due from a customer in 7 months
A one-year certificate of deposit due in six weeks
An investment in a U. S. bond due in two years
QUIZ 2(2)

Question 1 (0.4 points)

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Cash and cash equivalents include assets that
Question 1 options:
have stable long-term value
are expected to be used up within a year
consistently grow in value over the long run
are short-term, highly liquid, and purchased by the entity within three months of maturity

Question 2 (0.4 points)

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The statement of cash flows cannot be used to determine
Question 2 options:
expenditures on long-term assets
reliance on external financing
changes in working capital
profitability as measured by specific revenues and expenses

Question 3 (0.4 points)

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A company purchased money market funds with cash during the current year. Which of the
following statement is correct?
Question 3 options:
This transaction will not cause a change in cash from operating, investing, or financing activities
This transaction will result in a decrease in cash from investing activities
This transaction will result in a decrease in cash from operating activities
This transaction will result in a decrease in cash from financing activities
Question 4 (0.4 points)
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Which of the following statements about the statement of cash flows is not correct?
Question 4 options:
GAAP requires every company to report a statement of cash flows
The statement of cash flows is needed because the income statement and balance sheet do not provide
adequate information about the changes in cash
The statement of cash flows provides information about how each major type of business activity causes a
company's cash to change
The statement of cash flows is contained in the notes to the financial statements

Question 5 (0.4 points)

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Which of the following statements is correct?
Question 5 options:
Cash flows are not easily manipulated because they are generated by internal transactions and do not
involve external parties
Accrual-based net income can be manipulated because it is based on estimates
Accrual-based net income is not easily manipulated because valuation for such items as bad debts and
inventory are precise and based on objectively verifiable information
Cash flows are easily manipulated because they are based on estimates

QUIZ 3
Question 1 (1 point)
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Direct expenses are also known as
Question 1 options:
Major expenses
Chargeable expenses
 Sundry expenses
Overhead expenses

Question 2 (1 point)
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Fixed cost is a cost:
Question 2 options:
Which changes in total in proportion to changes in output
which remains same for each unit of output
Which do not change in total during a given period despise changes in output
which is partly fixed and partly variable in relation to output

Question 3 (1 point)
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Element/s of Cost of a product are:
Question 3 options:
Material, Labour and expenses
Material only
Labour only
Expenses only

Question 4 (1 point)
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Which of these is not an objective of Cost Accounting?
Question 4 options:
Ascertainment of Cost
Determination of Selling Price
Assisting Shareholders in decision making
Cost Control and Cost reduction
Question 5 (1 point)
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Conversion cost includes cost of converting……….into……..
Question 5 options:
Raw material, WIP
Finished goods, Saleable goods
Raw material, Finished goods
WIP, Finished goods

Question 6 (1 point)
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Responsibility Centre can be categorised into:
Question 6 options:
Profit Centres only
Investment Centres only
Cost Centres only
Cost Centres, Profit Centres and Investment Centres

Question 7 (1 point)
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The term "cost" refers to:
Question 7 options:
An asset that has no given benefit and is now expired
The price of a product sold or services rendered
An asset that has a given benefit and is now expired
The value of the sacrifice made to acquire goods or services
Question 8 (1 point)
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A total of all the direct costs is known as
Question 8 options:
Prime cost
Works cost
Cost of sales
Cost of production

Question 9 (1 point)
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Variable costs are those costs
Question 9 options:
That do not vary with the volume of production
That vary proportionately with the volume of production
That remain fixed though the volume of production varies
That vary disproportionately with the volume of production

Question 10 (1 point)
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Sunk costs are:
Question 10 options:
cost to be incurred in future
relevant for decision making
Not relevant for decision making
future costs

QUIZ 3(2)
0.4 / 0.4 points
Question 1
A total of all the direct costs is known as

Prime cost

Works cost

Cost of production

Cost of sales

0.4 / 0.4
Question
points
2
Element/s of Cost of a product are:

Material, Labour and expenses

Material only

Expenses only

Labour only

0.4 / 0.4
Question
points
3
Responsibility Centre can be categorised into:

Investment Centres only

Cost Centres, Profit Centres and Investment Centres

Cost Centres only

Profit Centres only

0.4 / 0.4
Question
points
4
Conversion cost includes cost of converting……….into……..

Finished goods, Saleable goods

WIP, Finished goods

 Raw material, Finished goods

Raw material, WIP

0.4 / 0.4
Question
points
5
Fixed cost is a cost:

Which do not change in total during a given period despise changes in output
which is partly fixed and partly variable in relation to output
Which changes in total in proportion to changes in output
which remains same for each unit of output

QUIZ 4
Question 1 (0.4 points)
Saved
A product should be dropped when
Question 1 options:
The variable costs that are spent exceed the contribution margin that is gained
The fixed costs that are avoided exceed the contribution margin that is gained
The variable costs that are spent exceed the contribution margin that is lost
The fixed costs that are avoided exceed the contribution margin that is lost.

Question 2 (0.4 points)

Saved
Contribution margin per unit represents the differences between
Question 2 options:
The sales and fixed costs
The difference between the sales and variable costs
The difference between the sales and manufacturing costs
The difference between the sales and total costs
Question 3 (0.4 points)
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Special-order decisions are appropriate when
Question 3 options:
Customers place orders that are different from those placed in the regular course of business
Customers place orders that are similar to those placed in a special business event
Customers place orders that are different from those placed in a special business event
Customers place orders that are similar to those placed in the regular course of business

Question 4 (0.4 points)

Saved
Constraint is a
Question 4 options:
Restriction that does not occur when the capacity to manufacture a product or to provide a service is not
limited in some manner.
Restriction that occurs when the capacity to manufacture a product or to provide a service is limited in
some manner.

Restriction that occurs when the capacity to manufacture a product or to provide a service is not limited in
some manner.
Restriction that does not when the capacity to manufacture a product or to provide a service is limited in
some manner

Question 5 (0.4 points)

Saved
Cost-volume-profit analysis captures the relationship between
Question 5 options:
A company's earnings per share and the prices and volume of products and services
A company's profits and the prices and the volume of products and services
A company's costs and the prices and volume of products and services
A company's sales and the prices and volume of products and services
QUIZ 5

Question 1 (0.4 points)

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Revision of budgets is__________
Question 1 options:
can't determine
inadequate data
necessary
unnecessary

Question 2 (0.4 points)

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Frequent revision of budgets will___________
Question 2 options:
both reliability and accuracy
increase the accuracy
affects its reliability
subjective matter

Question 3 (0.4 points)

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Budgetary control facilitates easy introduction of the_____________
Question 3 options:
 standard costing
ratio analysis
subjective matter
marginal costing

Question 4 (0.4 points)

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Budgetary control helps the management in
Question 4 options:
issue of shares
obtaining bank credit
getting grants from government
all of these

Question 5 (0.4 points)

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Budget period is the__________
Question 5 options:
period for which a budget is prepared
period of budget committee
period of budget centres
period of budget officer

QUIZ 6

Question 1 (0.4 points)

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Usage variance is the
Question 1 options:
 difference between the actual quantity and the standard quantity times the standard price
difference between the actual sales price and the flexible budget sales price times the actual sales volume
difference between the actual price and the standard price times the actual volume purchased
difference between the flexible budget operating income and actual operating income

Question 2 (0.4 points)

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Standard quantity is the
Question 2 options:
budgeted amount of materials, labor, and overheads for each product
budgeted amount of labor for each product
budgeted amount of materials for each product
budgeted amount of overheads for each product

Question 3 (0.4 points)

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Budget variance is the
Question 3 options:
difference between the actual quantity and the standard quantity times the standard price
difference between the actual sales price and the flexible budget sales price times the actual sales volume
difference between the amount of fixed overhead actually incurred and the flexible budget amount
difference between the actual price and the standard price times the actual volume purchased

Question 4 (0.4 points)

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Control involves
Question 4 options:
neither the motivation and monitoring nor the evaluation of people and other resources
both motivation and monitoring of people and the evaluation of people and other resources
 only the evaluation of people and other resources
only the motivation and monitoring of employees

Question 5 (0.4 points)

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Sales price variance is the
Question 5 options:
difference between the actual quantity and the standard quantity times the standard price
difference between the actual sales price and the flexible budget sales price times the actual sales volume
difference between the flexible budget operating income and actual operating income
difference between the actual price and the standard price times the actual volume purchased